Real estate agent commission got genuinely reshuffled by a 2024 settlement, but the rules changed more than the actual outcomes did for most sellers.
What's Inside
Real estate agent commission is more layered than the single percentage most people quote, and it's genuinely changed since the industry's biggest recent legal settlement, though not always in the direction people expected.
This delivers the fuller treatment referenced in both how much do real estate agents make? and real estate agent vs broker.
Quick honesty note
This is education, not legal or financial advice. Specific commission percentages below reflect national survey averages that shift over time. Commission is always negotiable and varies by market and agent.
The Short Answer
In short: Total commission typically runs around 5.7% of the sale price nationally, split unevenly between the listing side and buyer side.
Since an August 2024 settlement, buyer-agent compensation can no longer be advertised on the MLS, and buyers must sign a written agreement with their agent before touring homes, but sellers still commonly agree to cover the buyer's agent fee in practice, just through a different, more explicit negotiation process.
From there, each agent's actual take-home depends on their specific split with their brokerage, commonly 50/50 to 70/30 or better depending on production and tenure.
What the NAR Settlement Actually Changed
Effective August 17, 2024, following a settlement of the Sitzer/Burnett antitrust lawsuit in which NAR agreed to pay $418 million, two core practice changes took effect.
First, buyer-agent compensation can no longer be advertised or displayed through the MLS; any offer to pay a buyer's agent must be negotiated directly between the parties or written into the purchase contract instead.
Second, buyers must sign a written buyer-broker agreement, spelling out the agent's fee and who's expected to pay it, before touring homes with an MLS-participant agent.
What It Did Not Change
Worth being precise about
The settlement did not make agents employees of anyone, did not eliminate buyer representation, and did not cap what an agent can earn. Commissions remain fully negotiable, exactly as they always were.
What actually changed is how and where compensation gets agreed to, and the paperwork required before an agent can show a buyer homes, not whether commissions exist or how large they're allowed to be.
Why Sellers Still Often Pay Both Sides Anyway
Technically, each party is now responsible for their own agent under the new rules.
In practice, most sellers still agree to cover the buyer's agent fee, now more accurately described as a seller concession rather than an automatic MLS-listed offer, because refusing to do so narrows the pool of buyers who can afford a separate agent fee on top of their purchase.
Sellers who choose to offer this concession commonly propose somewhere around 2.5% to 3%. The changes haven't played out quite the way many predicted when the settlement was first announced; the underlying pattern of who ultimately pays has shifted less than the process for getting there.
Current Commission Rates
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| Component | Typical figure |
|---|---|
| Total commission (national average) | ~5.7% of sale price |
| Listing side share | ~2.9-3.0% |
| Buyer side share | ~2.7-2.8% |
On a $300,000 sale at roughly 5.7%, total commission comes to about $17,100, split into roughly $8,550 per side before either brokerage applies its own agent split.
How the Agent-Broker Split Works
The listing-side or buyer-side share is not what an individual agent actually keeps.
Brokerages apply their own split on top, commonly ranging from an even 50/50 to more favorable arrangements like 70/30 or 80/20 for higher-producing or more experienced agents, sometimes on a graduated scale that improves as an agent hits certain production thresholds within a year.
Some brokerages instead charge a flat desk fee and let the agent keep close to 100% of their commission, a structure that suits high-volume agents willing to trade brokerage support for a larger personal share.
Flat-Fee Alternatives, an Emerging Option
Alongside traditional percentage-based commission, some brokerages now offer flat-fee models charging a fixed dollar amount regardless of sale price, an emerging alternative gaining some traction post-settlement as competition on price has increased.
This remains a minority approach compared to percentage-based commission, but it's worth knowing about as the industry continues adjusting in the wake of the settlement.
Common Mistakes (and How to Dodge Them)
- Assuming the NAR settlement eliminated buyer-agent compensation. It changed how compensation is negotiated and disclosed, not whether it exists; sellers still commonly cover it in practice.
- Believing commissions are capped or fixed by law. They remain fully negotiable and always have been; the settlement changed process, not pricing rules.
- Confusing the listing-side/buyer-side split with an agent's personal take-home. Each agent's brokerage split further reduces what actually lands in their pocket.
- Touring homes with a buyer before signing the required written agreement. This is now a compliance requirement for MLS-participant agents, not an optional courtesy.
- Assuming your specific split will improve automatically with tenure. Graduated splits are typically tied to production thresholds, not simply time at the brokerage.
Frequently Asked Questions
Did the NAR settlement eliminate real estate commissions?
No. Commissions remain fully negotiable exactly as before; the settlement changed how and where buyer-agent compensation is negotiated and disclosed.
Who pays the buyer's agent now?
Technically each party is responsible for their own agent, but in practice most sellers still agree to cover the buyer's agent fee as a negotiated concession rather than an automatic MLS-listed offer.
What is the average real estate commission in 2026?
Roughly 5.7% of the sale price nationally, split unevenly between the listing side (about 2.9-3.0%) and buyer side (about 2.7-2.8%).
How much does an individual agent actually keep from a commission?
Less than the listing-side or buyer-side share alone, since the brokerage applies its own split on top, commonly ranging from 50/50 to 70/30 or better depending on production and arrangement.
Do buyers now have to sign an agreement before touring homes?
Yes. A written buyer-broker agreement specifying the agent's fee is now required before an MLS-participant agent can show homes to a buyer.
Are flat-fee real estate commissions common?
They remain a minority approach, but some brokerages now offer flat-fee models charging a fixed dollar amount regardless of sale price as an emerging alternative to percentage-based commission.
Understand the Splits, Not Just the Headline Percentage
Real estate agent commission involves several layers most people never see: the total rate, an uneven split between listing and buyer sides, and then each agent's own arrangement with their brokerage on top of that.
The rules genuinely changed in 2024, requiring more explicit negotiation and paperwork, but the underlying economics of who typically pays have shifted less than expected.
Knowing all the layers, not just the headline percentage, is what actually explains what lands in an agent's pocket.
Take This Further
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Education only, not legal or financial advice. Commission percentages reflect national survey averages that shift over time and are marked for verification where noted. Commission is always negotiable and varies by market, agent, and brokerage.
Written by
Nwaeze David
Nigerian digital entrepreneur, educator and author of three real estate books. He writes practical, honest guides for new investors, working realtors and Africans building back home from abroad.
